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Why Tech IPOs Don’t Have to Be Money Losers

There was a time when a company could not sell its shares to the public unless its revenues were growing and it was turning a profit. Companies that lost money were deemed too risky for public investors. Those startups raised money from venture capitalists, who accepted the outsize risk for the chance to reap outsize returns.

Oh, how quaint that time was. Most of the tech companies that have gone public since 2011 are still posting losses.